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Cardano (ADA) price could fall by 26% according to this technical model

YesChCardano (ADA) price is forming a bearish reversal pattern, according to which the altcoin is expected to see a larger correction than expected.

At the same time, the ADA Poised to rise, this sentiment alone can cushion the potential decline.

Cardano ADA whales are in decline

Whales are one of the largest and most influential groups of whales on any cryptocurrency, as their movements most affect price action. This is also the case for Cardano.

Although whales own less than 20% of the circulating supply, their dominance in daily trading volume makes them a very important category. Of the $17.7 billion traded in the last 24 hours, these whales made transactions worth around $17.4 billion.

Cardano whale transactions.
Cardano whale transactions. Source: In the block

However, this figure is significantly lower than their transactions five days ago, when they moved around $23 billion worth of ADA between addresses. This decline shows a decline in the bullish trend among the whales, which in turn will negatively impact the price action.

Cadrano ADA price forecast: big corrections underway

Cardano price is trading at $0.618 at the time of writing, losing support at $0.619 after a 6% correction today. The third generation cryptocurrency is witnessing a double top trend forming on the daily chart. Currently, $0.619 is the breakout point of the pattern.

The double top pattern is a bearish reversal pattern in technical analysis. It is characterized by two consecutive peaks at similar price levels, indicating a possible trend reversal from bullish to bearish. This trend indicates that buyers are losing momentum and a downward price movement often ensues.

ADA/USDT 1-day chart.
ADA/USDT 1-day chart. Source: Trading View

According to this model, the bearish reversal target price is set at $0.455, which is approximately 26% below the breakout point.

A good opportunity for investors

Although the outlook is bearish, Cardano's price decline has created an ideal environment for accumulation. Based on the market value/realized value ratio (MVRV). ADA In the opportunity zone.

MVRV is a metric used to compare current market value to realized market value. This indicates whether the cryptocurrency is overvalued or undervalued compared to its historical price. A 30-day MVRVV of -13.45% means that investors who purchased ADA last month are currently experiencing losses of 13.45%.

Cardano MVRV report.
MVRVRV report for Cardano. Source: Feeling

This also means that the index is in the opportunity zone, which is between -8% and -18%. Historically, this area has seen price reversals, making it ideal for ADA accumulation.

Thus, the accumulation could trigger a bullish reversal, which in turn could invalidate the bearish thesis by preventing a fall below $0.580.

Of confidence


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